The divergence between Markit’s US Manufacturing PMI and the ISM’s “Report on Business” narrowed a bit today with both numbers retreating a bit but ISM cooling more.
ISM Manufacturing
Slowest PMI Improvement in 7 Months
Key Findings
April data revealed a sustained upturn in U.S. manufacturing production, but the rate of growth moderated further from the 22-month peak recorded in January. The slower rise in output volumes largely reflected a more subdued pace of new business growth in April. Payroll numbers continued to increase across the manufacturing sector, driven by efforts to boost production capacity. However, latest data indicated that manufacturers sought to reduce their stocks of purchases, which ended a six-month period of inventory building. Meanwhile, cost pressures intensified, with input prices rising at the fastest pace for just over two-and-a-half years.
The latest survey highlighted strong cost pressures across the manufacturing sector. The rate of input price inflation accelerated to its fastest since September 2014. A number of panel members cited higher prices for metals, especially steel. Efforts to pass on higher costs to clients led to the most marked rise in factory gate charges for nearly two-and-a-half years.
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